ALBUQUERQUE, N.M. — A New Mexico federal judge has ordered bifurcation of the trial of breach of contract claims from the trial of bad faith and other extra-contractual claims in a hailstorm coverage action, ruling that it will promote judicial economy because the extra-contractual claims are contingent on the breach of contract claim.

On April 4, Judge Robert Brack of the U.S. District Court for the District of New Mexico further held that bifurcation is appropriate because the breach of contract claim is separable from the extra-contractual claims, and it will avoid the danger of unfair prejudice to the insurer ...